Audit shows some hotels still owe tax

Lehigh County trying to collect about $82,000 in revenue.

November 13, 2007|By Paul Muschick Of The Morning Call

Lehigh County auditors have uncovered about $82,000 in hotel room tax money that was not been submitted by hotels last year.

The controller's office visited all 43 hotels in the county and found that some had improperly claimed tax exemptions on receipts, some had made more money than they had reported to the county, and some had not submitted all of the tax revenues they had charged guests.

Of the 43 hotels, auditors found that 31 owed money ranging from $34.63 to $12,092.44. Seventeen hotels owed less than $1,000.

All but three have paid the amount due or set up a repayment schedule, said Deputy Controller John Falk, who believes the final three are resolving those issues with county lawyers. The three outstanding hotels owed some of the highest amounts, according to the controller's office.

Lehigh and Northampton counties levied a 3.5 percent tax on hotel room revenue in 2000, with the money to be used to promote tourism. In 2005, the rate was increased to 4 percent.

Both counties give 68.75 percent of that revenue to the Lehigh Valley Convention and Visitors Bureau, the area's regional tourism agency, and retain 31.25 percent for their own tourism-related programs.

The $82,019 recovered through the audits will be divided according to that formula, Controller Peter Shaffer said.

According to the controller's office, the hotels owing the most money were the Staybridge Suites, $12,092.44, and Hilton Garden Inn-Airport, $10,310.78, both in Hanover Township, Lehigh County. Neither has paid what the county says it is owed.

Bruce Hoegg, the general manager at both hotels, said the corporate office is reviewing the issue.

"There is some question if we owe the money, and we are working with the county on determining that," Hoegg said Monday.

Others owing large amounts include the Days Inn & Conference Center in South Whitehall Township, $10,258.38; Royal Motel in Allentown, $9,496.56; and Executive Inn in Coopersburg, $8,339.58.

A manager at the Royal Motel, who would not identify herself, said it has paid $1,000 and is setting up a payment plan for the balance. She said the hotel tried to dispute the bill.

"They won't accept our arguments, they won't compromise," she said. "Basically, it's their way and that's that. ... We have to pay the bill; we have no choice."

Phone calls to the Days Inn & Conference Center and the Executive Inn had not been returned as of late Monday afternoon. Both have paid their balances, according to the controller's office.